Give your Super some love. Understand this could be the biggest asset you will ever own.
Now if you are overseas you may call your retirement savings something else but these concepts are universal:
- Know where your superannuation is… many times I have clients come to me with multiple funds, not only is this expensive because you are paying admin fees and investment manager fees you are so much better off investing all your money in one place to take advantage of compounding interest.
- Know how you are invested….. ok I don’t expect you to be an expert in buying and selling stock or how to pick managed funds, however it is important to understand how your money is invested. Is it invested in multiple assets, meaning is it diversified or just in one kind of asset class?
- Is your risk appetite in line with how you are invested? Are you over exposed to too many defensive assets or too many growth assets? You need to understand how exposed your investments are to volatility and whether you are comfortable to ride out the storm.
- Are you happy with how your investments are performing? Not sure? All investments will have a performance index which you should have access to – most funds have this on there website showing 1 month, 3 month, 1 year, 3 year and 5 years returns.
- A very obvious point… but I need to make this clear…
Seem like a big ask? Not really if this money doesn’t go to your super, it will go to the tax department. A quick disclaimer – this is general advice only, you should seek financial advice to make sure any additional contribution you do is the right option for you.
- Ensure your contributions are covering any insurance premiums inside your super…. I do recommend you get advice around insurance in super – is it appropriate for your needs? Are you covered for what you need? Or is this eating into your retirement plan?
- What fees are you paying? When it comes to super there is no apples versus apples, sometimes you have a great performing fund, but you pay higher management fees… If you get the return, are those fees worth investing in? Well yes most likely, but if it isn’t then you may need to find a fund that meets yours needs – unless you are under advice, then you need to be having a talk to your adviser.
Remember this is an incredible tax effective asset and at retirement will be tax free for you so take advantage of this compulsory savings vehicle.
The information in this document is general advice only, I do recommend you seek financial advice to get the right savings and investment strategy when it comes to your retirement planning.